TaxTMI 
TaxTMI 
1980 (1) TMI 56
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....37 of the Income-tax Act, 1961 ? (2) Whether, on the facts and in the circumstances of the case, there was any evidence before the Tribunal to come to the conclusion that the payments of mamool were made by the assessee ? (3) Whether the Appellate Tribunal's allowance of deduction without verifying the genuineness of the payment is sustainable in law ? " The assessee is a registered firm carrying on business as stevedoring contractors to M/s. Scindia Steam Navigation Company Ltd. and Food Corporation of India at the Madras port. It claimed deduction of payments of commission said to have been made to the crew of various ships calling at the port. The ITO took the expenditure to be in the nature of entertainment expenditure and limited th....
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....T. authorities, that the assessee had to obtain a " no damage " certificate from the captain of the ship before it could claim the bills from its constituents. In order to preserve proper relationship with the staff in the ship so as to enable such certificates being obtained, the assessee, it was claimed, made these payments for the several years. The ITO himself has, in the course of the assessment order, observed about the inevitable nature of this expenditure in this trade. The Tribunal also has apparently drawn on the treatment of the claim made in similar cases. It was in that context that the Tribunal estimated 15% of the commission: payments as claimed by the assessee as inadmissible. The balance of 85% was taken to be admissible. T....